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In response to rising costs on farms, European dairy co-op, Arla Foods has confirmed that it is making its first ever half-year supplementary payment to farmer owners.
Suppliers across Europe will receive an additional 1c/kg of milk (0.85p/kg) in September.
In recent years Arla has made a supplementary payment of 1c/kg to farmer owners as part of a so-called retainment policy.
Last November, the co-op announced that it would increase this payment to 1.5c/kg and it would be paid in two instalments – in September and March.
Confirming the September payment, Arla also highlighted issues around global milk production in the second half of 2022.
It expects further declines in production, which will contribute to sustained high dairy prices, but on the flip side, those high prices “will likely further diminish consumer confidence and consumption.”
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